MIRA INFORM REPORT

Report Date :

19.10.2006

IDENTIFICATION DETAILS

Name :	KISAN MOULDINGS LIMITED
Registered Office :	TEX CENTRE', 'K1 Wing, 3rd Floor, 26 'A', Chandivli Road, Near HDFC Bank, Off. Saki-Vihar Road, Andheri (East), Mumbai - 400 072, Maharashtra, India.
Country :	India
Financials (as on) :	31.03.2006
Date of Incorporation :	20.11.1989
Com. Reg. No.:	11-54305
CIN No.: [Company Identification No.]	U17120MH1989PLC054305
TAN No.: [Tax Deduction & Collection Account No.]	MUMK05663A
Legal Form :	A Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.
Line of Business :	Manufacturer of PVC Pipes, Suction Hose Pipes and HOPE Pipes, Furniture of Plastics, Flush Tank and All Kinds of Fittings of PVC Resin

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 925000
Status :	Good
Payment Behaviour :	Usually Correct
Litigation :	Clear
Comments :	Subject is a well established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	TEX CENTRE', 'K1 Wing, 3rd Floor, 26 'A', Chandivli Road, Near HDFC Bank, Off. Saki-Vihar Road, Andheri (East), Mumbai - 400 072, Maharashtra, India.
Mobile No.:	91-9821126203
Factories:	Ø L - 43 & 45, MIDC, Tarapur - Boisar, Thane – 400 601, Maharashtra, India. Ø T-110/111, MIDC Tarapur-Boisar, Thane – 400 601, Maharashtra, India. Ø Survey No. 34/1/1, Village-Umerkui, Silvassa – 396 230, Union Territory, India.

DIRECTORS

Name :	Mr. Ramesh J. Aggarwal
Designation :	Chairman
Name :	Mr. Vijay J. Aggarwal
Designation :	Vice Chairman - 1
Name :	Mr. Ashok J. Aggarwal
Designation :	Vice Chairman - 2
Name :	Mr. R. D. Suvarna
Designation :	Director
Name :	Mr. S. S. Gupta
Designation :	Director
Name :	Mr. S. K. Jain
Designation :	Director
Name :	Mr. T. B. Subramaniam
Designation :	Director
Name :	Mr. Sunil Goyal
Designation :	Director
Date of Appointment:	24.12.2005
Name :	Mr. Sanjeev A. Aggarwal
Designation :	Joint Managing Director
Name :	Mr. Satish J. Aggarwal
Designation :	Managing Director
Name :	Rathi & Associates
Designation :	Company Secretary

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Promoter Holding
Indian Promoters	5204244	73.94
Non Promoter Holding
Others
Private Corporate Bodies	681671	9.69
Indian Public	1148938	16.32
NRIs/ OCBs	2499	0.04
Any other (Shares in Transit)	825	0.01
Total:	7038177	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer of PVC Pipes, Suction Hose Pipes and HOPE Pipes, Furniture of Plastics, Flush Tank and All Kinds of Fittings of PVC Resin

Products :

Products	ITC Code No.
All Kinds of Fittings of PVC Resin	9174000
Flush Tank	39229000
PVC Pipes, Suction Hose pipes and HOPE Pipes	39172390
Furniture of Plastics	94037000

PRODUCTION STATUS

Particulars	Unit	Installed Capacity	Actual Production
PVC O’ Ring, Agri Fitting, Gamela & Suction Pipes.	MT	9165	45610437 (Pcs.)* 16591 (Rolls)* 51060717 (Pcs.)* 491 (Rolls)*
Inter-Mediate Products	Kgs.	N.A.	NIL
Flush Tank	Pcs.	120000	53448
Moulded Furniture	Pcs.	5850	1447632
PVC Solvent	Ltrs.	N.A.	331597
Rubber Lubricant	Kgs.	N.A.	3470

* Includes Products Processed by Third Parties.

GENERAL INFORMATION

No. of Employees :

600

Bankers :

Ø Punjab National Bank

Ø Union Bank Of India

Ø The Shamrao Vithal Co-Op. Bank Ltd.

Facilities :

Secured Loan	Amount (In Millions)
Term Loans
From Financial Institutions (Due with in 1 year Rs. 9.880 Millions Previous year Rs. 9.880 Millions)	33.345
From Banks (Due with in 1 year Rs. 11.177 Millions Previous year Rs. 18.174 Millions)	37.721
Working Capital Loans from Bank	264.285
Other Loans	5.197
Unsecured Loan
From Directors, Relatives & Shareholders and a firm in which Directors are interested.	15.510
Deposits from Dealers	2.239
Inter-corporate Loans	16.417
Total:	374.714

Banking Relations :	Satisfactory
Auditors :	Mittal & Associates Chartered Accountant
Associates/Subsidiaries :	Ø Kisan Irrigations Limited Ø Kisan Extrusions Limited Ø Bhagirath Agro Plast Ltd. Ø Poisons Investment & Finance P. Ltd. Ø Reliance Industrial Products Ø Vijay Steel Traders Ø R. J. Aggarwal & Others

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs. 10/- each	Rs. 100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
7038177	Equity Shares	Rs. 10/- each	Rs. 70.381 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2006	31.03.2005	31.03.2004
SHAREHOLDERS FUNDS
1] Share Capital		70.381	35.651	35.700
2] Share Capital Suspense		0.000	34.730	0.000
3] Reserves & Surplus		161.113	134.105	11.000
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		231.494	204.486	46.700
LOAN FUNDS
1] Secured Loans		340.548	255.991	76.700
2] Unsecured Loans		34.168	13.028	10.600
TOTAL BORROWING		374.716	269.019	87.300
DEFERRED TAX LIABILITIES		47.157	39.326	0.000
TOTAL		653.367	512.831	134.000
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		255.418	259.006	60.700
Capital work-in-progress		1.721	0.000	0.700
INVESTMENT		2.137	2.431	0.300
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	171.463	146.129	54.600
	Sundry Debtors	337.548	211.126	48.400
	Cash & Bank Balances	23.551	13.990	5.100
	Other Current Assets	5.537	8.013	0.000
	Loans & Advances	18.795	12.574	8.000
Total Current Assets		556.894	391.832	116.100
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	154.939	136.483	41.100
	Provisions	8.025	4.065	2.700
Total Current Liabilities		162.964	140.548	43.800
Net Current Assets		393.930	251.284	72.300
MISCELLANEOUS EXPENSES		0.161	0.110	0.000
TOTAL		653.367	512.831	134.000

PROFIT & LOSS ACCOUNT

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Sales Turnover [including other income]	1061.301	655.645	198.700
Profit/(Loss) Before Tax	46.863	24.267	7.100
Provision for Taxation	11.830	5.916	1.900
Profit/(Loss) After Tax	35.033	18.351	5.200
Export Value	1.331	5.062	NA
Import Value	46.034	2.542	NA
Total Expenditure	1014.437	631.378	179.900

QUARTERLY RESULTS

PARTICULARS	30.06.2006 (1^st Quarter)
Sales Turnover	246.900
Other Income	0.500
Total Income	247.400
Total Expenditure	219.300
Operating Profit	28.100
Interest	8.600
Gross Profit	19.500
Depreciation	7.200
Tax	1.400
Reported PAT	11.800

200606 Quarter 1

Notes: EPS is Basic and Diluted Status of Investor Complaints for the quarter ended 30.06.2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter Nil Complaints disposed off during the quarter Nil Complaints unresolved at the end of the quarter Nil 1. The above results as reviewed by the Audit Committee have been taken on record by the Board of Directors at their meeting held on 29.07.2006. 2. The above results for the quarter ended 30.06. 2006 are subject to 'Limited Review' to be carried out by the Auditors in accordance with clause 41 of the listing agreement with the Stock Exchange. 3. The Board has approved the company's expansion in manufacturing facilities of about Rs. 300.00 Millions at the new land acquired at Tarapur. 4. Due to nature of Business & Common Facilities of various segments, a reasonable allocation of Capital employed to various segments is not currently practicable. 5. The Figures for the current period are not comparable with the previous period due to the amalgamation of erstwhile gaurav Agro Plast Limited with the company has approved by the Honourable Court of Bombay vide its order dated 05.08.2005. 6. Corresponding figures of the previous quarter / year have been regrouped / recasted wherever necessary. 7. The Figures of Segemntwise revenue, results and capital employed is not available for corresponding quarter for the previous period ended 30.06.2005 and hence not reported.

KEY RATIOS

PARTICULARS	31.03.2006	31.03.2005	31.03.2004
Debt-Equity Ratio	1.48	1.42	1.89
Long Term Debt-Equity Ratio	0.55	0.70	0.87
Current Ratio	1.17	1.18	1.26
TURNOVER RATIOS
Fixed Assets	2.20	2.18	1.56
Inventory	6.56	6.41	3.88
Debtors	3.80	4.96	4.19
Interest Cover Ratio	2.34	1.73	1.76
Operating Profit Margin(%)	10.71	13.24	14.57
Profit Before Interest And Tax Margin(%)	7.85	8.95	8.51
Cash Profit Margin(%)	6.22	7.15	8.77
Adjusted Net Profit Margin(%)	3.36	2.86	2.70
Return On Capital Employed(%)	15.16	18.97	12.66
Return On Net Worth(%)	17.44	17.00	11.62

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 46.45/-
Low	Rs. 42.60/-

LOCAL AGENCY FURTHER INFORMATION

Kisan Mouldings was incorporated in November 1989 as Sanwaria Synthetics Pvt Ltd and was converted into a public limited company in 1993. It acquired its present name in November 1993. It was promoted by Ramesh J Aggarwal and Satish J Aggarwal.

The company initially set-up a project for manufacturing SWR rigid PVC fittings with an installed capacity of 600 tpa at Tarapur, Maharashtra. Phase-I of the project commenced production of SWR PVC fittings in April 1994. The company came out with a public issue in February 1995 to part-finance the project. After this, the company expanded and diversified its product range by manufacturing rigid PVC threaded / plumbing fittings, large sized rigid PVC agriculture / pressure pipefittings and ABS flush tanks, which was completed in 1995.

During 1996-97, the entire range of dies and moulds has envisaged under the expansion project has been completed and the commercial production and marketing of flush tanks has also been started during the year. 

In 1997-98, it had taken up the project for SWR fitting 90 MM size with a capital outlay of Rs 37.000 Millions which was completed in the first half of 1999-2000. But due to enable to meet growing demand, the project was restructured thereby increasing project cost to Rs.57.500 Millions.

The company is planning to obtain ISO-9002 and ISI Agmark certification and the steps are being taken to obtain for the same.

Performance:

The total income from operation of the Company has considerably increased from Rs. 643.598 Millions in previous year to Rs. 1042.093 Millions for the year under review. Due to implementation of measures for saving in costs, Profit before Depreciation, Interest and Tax increased from Rs. 84.839 Millions in the previous year to Rs. 111.278 Millions for the year under review. The Profit Before Tax has increased from Rs. 24.267 Millions to Rs. 46.864 Millions in the current year. The Net Profit After Tax for the year under review after providing for taxation is Rs. 35.033 Millions as against Rs. 18.351 Millions in the previous year.

Barring unforeseen circumstances, the Directors are confident of achieving better results in the ensuing year.

Dividend:

The Directors are pleased to recommend a dividend of Re. 1.00 per share (10% on par value of Rs. 10/- each) on the Equity Share Capital of the Company for the year ended 31.03.2006. The dividend, if approved, at the ensuing Annual General Meeting will be paid out of the profits of the Company for the year under review to all those equity shareholders whose names appear on the Company's Register of Members on 23.09.2006 or to their nominees. In respect of shares in dematerialised form, dividend will be paid to the beneficial owners as at the end of business on 15.09.2006 as per the details to be received from Depositories for the purpose.

Fixed Assets:

Land Leasehold, Land Freehold, Factory Building, Office & Godown building, Plant & Machinery, Dies & Mould, Furniture & Fixture, Vehicle and Other Assets, etc.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 44.84
UK Pound	1	Rs. 85.55
Euro	1	Rs. 57.28

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	6
--LEVERAGE	1~10	6
--RESERVES	1~10	6
--CREDIT LINES	1~10	6
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions